By Erin Stackley, Senior Commercial Legislative Policy Representative, NAR
Though the economy continues to rebound, reports of tightness in lending for commercial real estate persist. One potential culprit is increased regulation on financial institutions. These regulations were enacted to protect against another financial crisis, but some are overly-broad and redundant, resulting in a dramatic increase in compliance burden for financial institutions, felt most heavily by regional and community lenders. One particularly troublesome example is Basel III risk-based capital requirements for lenders.